Arlington Heights to explore TIF for redevelopment proposal

July 02, 2013|By Tracy GruenSpecial to the Tribune

The Arlington Heights Village Board has taken another step in the redevelopment of the Hickory-Kensington area.

The board approved a proposal at Monday's meeting from Kane, McKenna and Associates to complete Phase 1 of the project, which would evaluate whether the area would qualify as a tax-increment-financing district.

A TIF is a method of development or redevelopment by using future tax revenue to pay for improvements to public areas, according to Mayor Thomas Hayes.

Originally, staff recommended approving Phases 1 and 2 for up to $33,000, but the board decided to approve only the first phase for $12,500. The second phase would include drafting a redevelopment plan and the required approval process.

Ideas for the area include new retail stores, a pedestrian corridor, buildings with first-floor retail and second-floor housing and multiple-unit homes. The area, bordered by Dryden and Belmont avenues, Miner Street and Northwest Highway, includes Mariano's Fresh Market grocery store, the Arlington Crossings townhomes and a Walgreens drug store.

"The Hickory/Kensington area is an old and in many ways abandoned industrial area," Village Manager Bill Dixon said. "It's pretty close to downtown, so it does have the potential for redevelopment."

Previously, a board member had expressed concern that it seemed like the proposed redevelopment would create a second downtown.

"It needs to be complementary to downtown, not replace it," said Dixon.

Trustee John Scaletta moved to approve only Phase 1, saying the board should be taking one step at a time since it was uncertain if the area would qualify as a TIF district.

"Nothing's ever black and white," said Charles Perkins, director of planning and community development. He said he was "pretty confident" the area would qualify as a TIF district.

Hayes said a number of criteria need to be met to qualify as a TIF district. He agreed that only Phase 1 should be approved.

"A property owner actually sued us for the TIF, the International Plaza shopping center area, asserting that the area did not qualify as a TIF district," said Hayes about a lawsuit several years ago. "Ultimately, the court agreed with the Village Board. We just want to be careful we obtain a good legal opinion from a good consultant and then make a good decision."

Hayes said the village had used Kane, McKenna and Associates with other TIFs and had been pleased.

Trustee Joseph Farwell said it was important to make sure the costs for Phases 1 and 2 were reasonable.

"What can you provide the board with as proof that they are reasonable?" Farwell asked.

Perkins said other communities in similar situations had been surveyed to come up with the total of $35,000 or less for the first two phases.

"There's not a developer or proposal pending," said Dixon about the status of the redevelopment plan. "It's a step along the way to help us make some progress on the redevelopment of the site."